US close: Stocks rise again despite some weaker earnings

Goldman SachsSharecast / public domain image

US stocks finished on a positive note on Wednesday despite some fresh earnings reports from the likes of Goldman Sachs falling short of Wall Street estimates.

At the close, the Dow Jones Industrial Average was up 0.31% at 35,061.21 points, while the S&P 500 climbed 0.24% to 4,565.72.

The technology-heavy Nasdaq Composite eked gains of 0.03% to finish at 14,358.02 points.

On the currency front, the dollar was last down 0.08% against sterling at 77.22p, while it slipped 0.19% on the euro to 89.11 euro cents, and by 0.26% against the yen to change hands at JPY 139.28.

“Earnings season continues to deliver the good news that the Dow has been looking for,” said IG chief market analyst Chris Beauchamp.

“After living in the shadow of the Nasdaq 100, the index has soared in recent sessions thanks to good earnings from banks and others outside of the tech bubble.

“Fund managers are still underweight stocks, but a solid earnings season will drag more money back into stocks, supporting a rally over the summer and beyond.”

US housing starts decline in June, forecast remains positive for residential construction spending

On the economic front, a new report from the Department of Commerce showed US housing starts declining of 8.0% month-on-month in June, falling to an annual rate of 1.434 million, against a consensus estimate for 1.48 million.

However, the horizon did not seem gloomy for all experts analysing the housing market, with Kieran Clancy at Pantheon Macroeconomics maintaining a sanguine view on the state of residential construction spending in the coming months.

According to Clancy, the market could expect a steady rise in total residential construction spending, despite the recent dip in housing starts.

Goldman Sachs and Carvana climb, minor banking plays slip on earnings

In equities, multinational banking and financial services giant Goldman Sachs closed up 0.97%, even after it reported a significant drop in second-quarter earnings due to certain extraordinary charges.

The bank's overall revenue, however, exceeded analysts' predictions, while Goldman also announced a 10% increase to its quarterly dividend.

Elsewhere, used car retailer Carvana was a standout performer, skyrocketing 40.2% after it announced second-quarter sales that far exceeded expectations.

In addition to the stellar sales report, Carvana announced a debt restructuring agreement with its noteholders.

On the downside, some smaller banking firms struggled to find favour, with Interactive Brokers Group closing 4.98% lower, and United Community Banks falling 1.19%.

Both institutions fell short of expectations in their second-quarter earnings reports.

Reporting by Josh White for Sharecast.com.

Dow Jones - Risers

Verizon Communications Inc. (VZ) $33.97 5.27%
Salesforce.Com Inc. (CRM) $234.37 2.96%
Cisco Systems Inc. (CSCO) $52.43 2.32%
Coca-Cola Co. (KO) $61.64 1.77%
Walt Disney Co. (DIS) $87.04 1.27%
Walgreens Boots Alliance, Inc. (WBA) $29.93 1.18%
Goldman Sachs Group Inc. (GS) $340.55 0.97%
Home Depot Inc. (HD) $319.48 0.86%
Unitedhealth Group Inc. (UNH) $503.70 0.74%
Apple Inc. (AAPL) $195.10 0.71%